I’ve written before about Apple’s likelihood of introducing a 128 GB model of the iPhone, and possibly dropping the 16 GB configuration. I’ve also written about their reduction of the price difference to double the memory of a particular configuration, at least for the iPod touch. That was long overdue. For years, Apple charged $100 to go from 16 GB to 32 GB or from 32 GB to 64 GB, despite the decrease in memory costs over time. Combined with Apple's insistence on a closed design, with no expandable storage, those pricing decisions added insult to injury.
Now comes another indication that Apple is on track to releasing a 128 GB model of the next 4.7-inch iPhone (or the next one after that, as they could save the 128 GB configuration for the larger, 5.5-inch model expected later.) Alongside this speculation is the thought that Apple might keep the 16 GB model, but drop the 32 GB version. This makes sense because Apple will likely want to keep a low entry price, and the 16 GB model could do that, and by making the jump from 16 GB to 64 GB, they could keep their price points. It's a lot easier to swallow a $100 jump in price if you're quadrupling memory from 16 GB to 64 GB instead of doubling it. Keep in mind that 16 GB gets used up pretty quickly thanks to videos, photos, apps, and music, so spending the extra $100 to go to 64 GB now looks like the smart move.